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10 Risks Every Wholesaler-Distributor Needs Coverage for

As a wholesaler-distributor, you face unique business risks. And that makes having the right insurance all the more important. 

Most standard insurance policies include coverage for your building, your business personal property, the personal property of others in your care and most liability risks.

Yet there are other coverages worth considering that aren’t automatically included in your main policy. These “extras” are typically offered as endorsements—documents attached to an insurance policy that expand or restrict coverage. (In this example, they all expand coverage.)

Here are the 10 risks that wholesaler-distributors should consider covering by endorsement:

  1. The possibility of your vendor being sued because a customer is injured by a product they purchased through you.
  2. Brand name merchandise in your warehouse is damaged by a covered peril and cannot be sold.
  3. Lost income when a key supplier suffers a covered incident (like a major fire) and is unable to provide you merchandise to fill your orders.
  4. Damage to equipment caused by a utility failure that occurs away from your premises.
  5. The possibility of a customer buying goods under false pretenses that leaves you unable to recover the cost of the goods you sold.
  6. Equipment breakdown such as refrigerators, freezers, conveyors, telephones, computers or heating /cooling equipment.
  7. Penalties you incur after a covered loss prevents you from fulfilling the terms of a contract.
  8. A sewer or drain backup, ruining your inventory.
  9. The possibility of someone other than an employee stealing merchandise while it’s being transported.
  10. Loss or damage to employees’ tools both on and off your premises

Erie Insurance offers an affordable, bundled endorsement to help cover these risks. (Some are even included in your business policy—with the endorsement, you get higher limits for those coverages.)1

ERIE offers specialized coverage for wholesaler-distributors through the The ERIE Custom Collection® Wholesaler-Distributors Program. This specialized suite of products and services offers wholesaler-distributors like you better protection and peace of mind. Learn more about ERIE’s high-quality, affordable protection options by contacting your local ERIE agent.

1Certain terms and limitations may apply. See individual policies for specific coverage details. Refer to ERIE’s disclaimer.

ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.

The insurance products and rates, if applicable, described in this blog are in effect as of July 2022 and may be changed at any time. 

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. 

The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia or New York.  ERIE long term care products are not available in the District of Columbia and New York. 

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.